AI-driven economic transformation in Ghana: Paving the way for industrialisation introduction
Ghana, located in the West African sub-region, has seen impressive economic growth over the past few decades.
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As one of the fastest-growing economies in Africa, the country has demonstrated resilience and potential for further development. Ghana's diverse economy spans several key sectors, including agriculture, mining, oil and gas, manufacturing and services.
Despite this progress, Ghana still faces economic challenges that need strategic interventions to sustain growth and improve the livelihoods of its citizens.
According to the Ghana Statistical Service, the country's GDP grew by 6.5 per cent in 2019, marking a significant increase from previous years.
However, the COVID-19 pandemic in 2020 caused a substantial slowdown, with GDP growth plummeting to 0.4 per cent, as reported in the World Bank's 2021 economic outlook for Ghana.
By 2021, Ghana's economy began to recover, with GDP growth reaching 5.4 per cent. This positive growth rate highlights the need for diversification and innovation to ensure long-term sustainability and resilience against external shocks.
Agriculture remains the backbone of Ghana's economy, employing over 50 per cent of the workforce and contributing GH¢177.60 billion, or approximately 22.7 per cent of GDP.
The mining sector also plays a crucial role, contributing about 40 per cent of gross foreign exchange earnings and generating 5.7 per cent of GDP.
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Additionally, the oil and gas sector is projected to contribute GH¢10.25 billion (around US$855.3 million) to GDP in 2023, up from GH¢11.62 billion (roughly US$969.4 million) in 2021.
The services sector, which includes banking, telecommunications, tourism and retail, is the largest contributor to Ghana’s GDP, accounting for GH¢357.34 billion, or approximately 45.6 per cent (Ghana Statistical Service, 2023).
The financial services industry has seen significant growth, driven by increased mobile phone penetration and innovative fintech solutions. Ghana's labour market faces challenges with high unemployment, particularly among the youth.
The average unemployment rate for the first three quarters of 2023 was estimated at 14.7 per cent, with the rate among females consistently higher than males (Ghana Statistical Service).
The economy's reliance on exporting raw materials exposes it to global market volatility, while underdeveloped infrastructure hinders the country’s path toward industrialisation and sustainable economic development.
Definition and Scope of Artificial Intelligence (AI) refers to machines that can think and learn like humans. AI includes various areas like machine learning, deep learning, natural language processing, robotics, speech recognition and computer vision. Its impact reaching many industries, transforming processes, boosting efficiency and making decisions with minimal human involvement.
Economic
Artificial Intelligence (AI) is a powerful force in today's global economy, driving change by boosting productivity, fostering innovation and creating new job opportunities.
The use of AI in different sectors has a big impact on global GDP, and this is becoming more noticeable in Africa, including Ghana. A report by PwC in 2018 suggested that AI could add up to $15.7 trillion to the global economy by 2030, making it one of the biggest economic opportunities of our time.
A study by McKinsey & Company in 2020 estimated that AI could add $1.2 trillion to Africa's GDP by 2030, thanks to improvements in key sectors such as agriculture, healthcare, financial services, public services and infrastructure.
For Ghana, AI can make operations more efficient and less costly, and enhance decision-making in various sectors, from agriculture to healthcare and finance.
By using AI, Ghana can speed up its industrialisation efforts, reduce its reliance on exporting raw materials and build a more resilient and diversified economy.
Challenges in Adopting AI in Ghana
Implementing AI in Ghana faces several significant challenges. One major issue is the lack of robust infrastructure. Reliable electricity and high-speed internet are crucial for AI operations, yet many parts of Ghana experience frequent power outages and limited internet connectivity.
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AI systems depend heavily on large datasets to function effectively. In Ghana, many organisations lack the infrastructure and practices needed to collect, store and manage data efficiently.
The available data often lacks necessary detail and accuracy, leading to suboptimal performance of AI models. There is also a significant gap in AI-related skills and expertise in Ghana.
The country has a shortage of professionals trained in AI, machine learning and data science. However, educational institutions are still catching up in offering relevant programmes and courses.
Financial constraints present another barrier to AI adoption. The costs associated with acquiring AI technologies, training staff and maintaining AI systems can be prohibitively high, especially for small and medium-sized enterprises (SMEs). Cultural attitudes and societal norms can also influence AI adoption. There may be resistance to change due to fears of job displacement and a lack of understanding of AI’s benefits.
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Ghanaian Economy
Artificial Intelligence (AI) has the potential to revolutionise many sectors in Ghana, driving economic growth and industrialisation. In agriculture, AI can optimise planting and irrigation, leading to higher crop yields and less waste.
Using AI-powered drones and sensors, farmers can get real-time information on soil conditions, weather patterns and crop health, allowing them to make informed decisions. AI predictive analytics can help farmers anticipate and manage pest infestations and disease outbreaks, improving crop quality and reducing losses.
In healthcare, AI can improve diagnostic accuracy, personalise treatment plans and streamline administrative processes. AI-powered diagnostic tools like Zebra Medical Vision and Ada Health can assist doctors in diagnosing conditions such as cancer, stroke and tuberculosis more accurately and quickly.
AI-powered telemedicine platforms like Babylon Health and Mediktor can connect patients in remote areas with doctors, providing timely medical consultations and reducing the burden on healthcare facilities.
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The education sector in Ghana can benefit from AI through personalised learning experiences, automated grading and intelligent tutoring systems. AI can tailor educational content to individual students' needs and learning styles, improving learning outcomes and reducing dropout rates.
AI-driven analytics can provide educators with valuable insights into student performance, enabling data-driven decisions to enhance teaching effectiveness.
In the financial sector, AI can enhance financial inclusion by providing access to services for underserved populations. AI-powered fintech solutions can offer personalised financial products like micro-loans and mobile banking to individuals without access to traditional banking.
It can also improve the security and efficiency of financial transactions, reducing fraud risk and enhancing customer experiences. Although the manufacturing sector in Ghana is underdeveloped, AI can drive industrialisation by optimising production processes, reducing downtime and improving product quality.
Ghana’s transport and logistics infrastructure faces challenges like traffic congestion and inadequate road networks. AI can improve efficiency by optimising route planning, reducing congestion, enhancing traffic management and automating logistics operations.
In tourism, AI is capable of enhancing the sector by providing personalised travel experiences and optimising marketing strategies. AI-driven chatbots and virtual assistants can help tourists plan their trips, offering tailored suggestions based on their preferences.
The telecommunications sector can benefit from AI through improved network performance, optimised service delivery, enhanced customer service and innovative services.
AI-powered analytics can monitor network traffic, predict outages and allocate resources efficiently, ensuring reliable and high-quality connectivity.
In disaster management, AI can predict natural disasters, optimise emergency response and coordinate relief efforts. AI algorithms can analyse geological and meteorological data to predict earthquakes, floods and storms, providing early warnings to vulnerable communities. AI systems can also monitor and manage Ghana’s natural resources.
They can analyse data from satellites, drones and sensors to monitor deforestation, water quality and air pollution, providing real-time alerts and predictive analytics to help authorities address environmental issues proactively.
For renewable energy, AI can optimise production and distribution by analysing weather patterns and energy consumption data. AI-powered predictive maintenance can reduce downtime and improve the efficiency of solar panels and wind turbines, enhancing the performance of renewable energy systems in Ghana.
The Role of the Government and Private Sector
To fully harness the potential of AI for economic transformation in Ghana, both the government and the private sector need to work together. Collaborative strategies and investments are essential to overcome challenges and seize opportunities.
The writer is a Senior Lecturer,
Department of Building Technology,
Accra Technical University,